Options in Twitter started trading as Elon Musk tweeted a poll asking his followers if Twitter is supporting free-speech or not on March 25th. Later that day, a large amount of calls traded in Twitter betting on a rally in the stock.
Below, is our new Analysis tab in the ORATS Dashboard. The circled cyan horizontal bar shows the open interest in the May $44 strike options that mostly traded on March 25th. Implied volatility graphed below that started to rise that day (purple arrow up) into the big announcement today that Musk is making a 'passive' 9% investment in Twitter shares.
Also, graphed is insider trades. The large circle shows that stock was bought at $43.94 on 2021-12-06 by V (Gp) L.L.C. Slta, a group related to Silver Lake Group, L.L.C. and ZUO stock.
Twitter shares are trading $50.10 up 27% near the close today 4/4/2022.
Implied volatility in the April 14th monthly expiration is at 88% up 115% today. The put call slope has steepened severely to -3.2% indicating that every 10 deltas the IV will be 3.2% higher.
It is usual for Twitter and most stocks to be positively sloped where the puts have a higher IV than the calls. This was the case for Twitter on 3/24/22 before Musk started tweeting. Twitter's slope was positive 1.5% and now will all the calls being bought the slope is negative 1.2%.